Samsara soars on strong earnings beat and solid guide

Investing.com -- Samsara Inc (NYSE: IOT) reported second quarter results that exceeded analyst expectations, with adjusted earnings per share of $0.20 beating the consensus estimate of $0.16 by $0.04. Revenue reached $508.4 million, surpassing the analyst estimate of $483.27 million and representing 30% growth YoY.

Shares surged 13% in after-hours trading Thursday following the results.

The company's annual recurring revenue (ARR) reached $2.125 billion, marking 30% YoY growth for the third consecutive quarter. Net new ARR of $134.1 million grew 28% YoY. The Connected Operations platform provider added a record 20 customers with ARR over $1 million during the quarter, bringing total ARR from this segment above $500 million with over 50% YoY growth.

"Samsara delivered another quarter of durable and efficient growth, crossing $2.1 billion in ARR with 30% year-over-year growth for the third consecutive quarter," said Sanjit Biswas, CEO and co-founder of Samsara. "Our large customers continue to drive our momentum, and customer adoption of some of our latest AI features is up more than 4x in the last two months."

For the third quarter, Samsara issued guidance of $514 million to $516 million in revenue, with a midpoint of $515 million exceeding the analyst consensus of $509.7 million. The company expects adjusted EPS of $0.18 to $0.19, with the midpoint of $0.185 slightly below the consensus of $0.19.

For fiscal year 2027, Samsara projects revenue of $2.043 billion to $2.047 billion, representing 26% YoY growth. The company expects adjusted EPS of $0.76 to $0.78 and anticipates remaining GAAP profitable. Samsara reported its fourth consecutive quarter of GAAP profitability with GAAP EPS of $0.03.

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